Contractor Orientation Meeting New State Term Contracts for

Contractor Orientation Meeting New State Term Contracts for Management Consulting Services & Financial and Performance Audits January 23, 2014 Craig J. Nichols, Secretary

Introductions Today’s Presenter Trey Collins, Division of State Purchasing Associate Category Manager Contract Manager Corina Chiorescu, Division of State Purchasing Contract Manager 2

Table of Contents • Contract Overview • Contract Objectives • Contractor Responsibilities • Q&A 3

Contract Overview Table of Contents Contract Overview Contract Objectives Contractor Responsibilities Management Consulting Services Contract Number: 973 -000 -14 -01 Contract Term: Three years / three optional one-year renewals Expiration Date: 1/14/2017 Commodity Code: 973 -500 Contractors Q&A 4

Contract Overview – STC Webpage http: //www. dms. myflorida. com/business_operations/state_purchasing/vendor_information/state_contracts_agreements_and_price_lists/state_term_contracts/management_consulting_services 2 5

Contract Overview Table of Contents Contract Overview Contract Objectives Contractor Responsibilities Q&A Financial and Performance Audits Contract Number: 973 -000 -14 -02 Contract Term: Three years / three optional one-year renewals Expiration Date: 1/14/2017 Commodity Code: 991 -010 Contractors • Carr, Riggs & Ingram • KPMG • Ernst & Young • Mc. Gladrey • Grant Thornton • Thomas Howell Ferguson 6

Contract Overview – STC Webpage http: //www. dms. myflorida. com/business_operations/state_purchasing/vendor_information/state_contracts_agreements_and_price_lists/state_term_contracts/financial_and_performance_audits 7

Contract Objectives Table of Contents Contract Overview Management Consulting Services & Financial and Performance Audits Contract Objectives 1. Easier to use for customers and contractors 2. Meaningful competition between contractors 3. Pricing options (hourly rate & project-based) Contractor Responsibilities Q&A 8

Table of Contents Easier To Use Contract Overview Management Consulting Services & Financial and Performance Audits Contract Objectives • One category of services per contract • Simplified price sheet Contractor Responsibilities • Smaller number of vendors Q&A 9

Table of Contents Contract Overview Contract Objectives Meaningful Competition Management Consulting Services & Financial and Performance Audits • Contract’s RFQ Requirement (Exhibit A, s. 18) – Customers must RFQ all contractors for all projects – Increases competition for price and services Contractor Responsibilities Q&A – Contractors are not required to compete on every RFQ • OK for customers to compete and negotiate lower rates – Hourly rates are “not-to-exceed” prices – Contractors should expect Customers will negotiate lower rates 10

Hourly Rate Pricing Option Table of Contents Contract Overview Management Consulting Services & Financial and Performance Audits Contract Objectives • Price sheets list ceiling hourly rates for five positions Contractor Responsibilities Q&A – – – Principal Senior Consultant Junior Consultant Program & Administrative Support • Customers must RFQ all contractors for all projects • Customers can negotiate lower hourly rates 11

Table of Contents Project-Based Pricing Option Contract Overview Management Consulting Services & Financial and Performance Audits Contract Objectives • May be used for projects with complex requirements • Customers must RFQ all contractors for all projects Contractor Responsibilities • Customers can negotiate lower project price Q&A 12

Table of Contents Contractor Responsibilities Contract Overview Management Consulting Services & Financial and Performance Audits Contract Objectives • Reporting • Forms & Documentation Contractor Responsibilities Q&A • Review Meetings • Contract Marketing 13

Table of Contents Contract Overview Contract Objectives Reporting Management Consulting Services & Financial and Performance Audits • Quarterly Sales Reports – Must use Form 2: Contract Quarterly Report (MS Excel) – Due within 30 calendar days of the end of each quarter Contractor Responsibilities Q&A – Submit to Corina Chiorescu, Contract Manager • Transaction Fee Reporting – One percent fee on all sales under the contract – Submit to My. Florida. Market. Place through Vendor Information Portal (VIP) 14

Table of Contents Contract Overview Forms & Documentation Management Consulting Services & Financial and Performance Audits Contract Objectives • Contact Information and Ordering Instructions (Form 3) Contractor Responsibilities • Proof of Insurance • Subcontracting (Form 1) • Preferred Pricing Affidavit Q&A – Required by Section 216. 0113, F. S. – Must be submitted annually to Contract Manager 15

Table of Contents Contract Overview Contract Objectives Contractor Responsibilities Q&A Business Review Meetings Management Consulting Services & Financial and Performance Audits • Conducted periodically with each contractor • Topics that may be addressed: – Contractor performance – Sales reports – Customer service – Unresolved issues 16

Table of Contents Contract Marketing Contract Overview Management Consulting Services & Financial and Performance Audits Contract Objectives • Contract customers Contractor Responsibilities Q&A – State Agencies – Other Eligible Users • Contract-related marketing materials must be approved by State Purchasing (PUR 1000, s. 28) • Use of the Florida State Seal is regulated by Department of State http: //www. flheritage. com/facts/symbols/seals. cfm 17

Table of Contents Contract Overview Contract Objectives Q&A Management Consulting Services & Financial and Performance Audits Any questions? Contractor Responsibilities Q&A 18

Contact Information • Corina Chiorescu, Contract Manager, (850) 921 -0030; corina. chiorescu@dms. myflorida. com • My. Florida. Market. Place - Vendor Information Portal http: //vendor. myfloridamarketplace. com • My. Florida. Market. Place Customer Service Desk (866) 352 -3776; vendorhelp@myfloridamarketplace. com 19

Helpful Links • My. Florida. Market. Place - Vendor Information Portal http: //vendor. myfloridamarketplace. com • MFMP Transaction Fee & Reporting • Vendor Toolkit 20

Appendix 21

Table of Contents Contract Overview What’s New Pricing How To Use The Contract Q&A Scope of Services Management Consulting Services • Management or strategy consulting • Program planning and evaluations • Studies, analyses, scenarios, and reports relating to an agency's business programs or initiatives • Executive/management coaching services • Customized business training as needed to successfully perform/complete a consulting engagement • Policy and regulation development assistance • Process and productivity improvement • Expert witness services in support of litigation, claims, or other formal cases • Advisory and assistance services • Systems alignment and consolidation 22

Scope of Services Table of Contents Contract Overview What’s New Pricing How To Use The Contract Financial and Performance Audits • • • Financial Statement Audits Segments of Financial Statements Internal Controls Compliance with Laws and Regulations Economy and Efficiency Audits Program Results and Program Fraud Audits Q&A 23

Statement of Work Table of Contents Management Consulting Services & Financial and Performance Audits Contract Overview • What’s New • How To Use The Contract Q&A • Purpose: A Statement of Work establishes the specific deliverables, costs, payment schedules, start/ completion dates, etc. for specific projects Statement of Work may contain additional terms and conditions negotiated by the customer – Additional terms may supplement those contained in the contract – Additional terms shall not conflict with the terms established by the contract The following items should be included in every Statement of Work: – Contract Manager – Project Completion Dates – Termination for Cause Language – Change Request Process – Other Considerations (Inspection and Acceptance Terms, Liability Insurance, Minority Participation, Performance Bond, Performance Management System) 24